Here are comparative balance sheets for Taguchi Company.
|
TAGUCHI COMPANY |
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|
Assets |
2010 |
2009 |
|
|
Cash |
$ 73,000 |
$ 22,000 |
|
|
Accounts receivable |
85,000 |
76,000 |
|
|
Inventories |
170,000 |
189,000 |
|
|
Land |
75,000 |
100,000 |
|
|
Equipment |
260,000 |
200,000 |
|
|
Accumulated depreciation |
(66,000) |
(32,000) |
|
|
Total |
$597,000 |
$555,000 |
|
|
Liabilities and Stockholders’ Equity |
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|
Accounts payable |
$ 39,000 |
$ 47,000 |
|
|
Bonds payable |
150,000 |
200,000 |
|
|
Common stock ($1 par) |
216,000 |
174,000 |
|
|
Retained earnings |
192,000 |
134,000 |
|
|
Total |
$597,000 |
$555,000 |
|
Additional information:
1. Net income for 2010 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2010, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2010 using the indirect method.